Raoul Pal predicts Bitcoin will outperform Nasdaq 100

Macro investor and Real Vision founder Raoul Pal predicts that Bitcoin will outperform the Nasdaq 100 in the coming period. Pal argues that rising interest rates may actually drive liquidity into the system through a process he describes as ‘fiscal dominance.’

According to Pal, as governments face higher costs to refinance significant debt, the need for fresh liquidity increases. He suggests that Bitcoin is a highly sensitive asset to these liquidity shifts. This thesis follows recent central bank actions, including a 25 basis point rate hike by the US Federal Reserve to a range of 3.75% to 4.00%, and a policy rate increase by the Bank of Japan to 1.25%.

Pal noted that Bitcoin has broken its downtrend against the Nasdaq 100 on weekly charts. Despite the traditional market expectation that higher rates would hurt risk assets, Bitcoin's price rose from approximately $75,580 to above $81,000 following the recent central bank decisions.